Everyone in the world is watching to see the damage from the Japanese nuclear reactors. As news leaks out that the nuclear reactors are leaking more nuclear waste it seems that the major stock market indexes in the United States are declining. When the news reports are released that the nuclear waste is contained the market is bouncing higher. Therefore, short term traders are handcuffed to the news out of Japan for the moment. Traders know that news can always have a short term impact on the market, however, the overall chart patterns and trends will usually tell the story for the market.
Many traders are following the iShares MSCI Japan Index Fund (NYSE:EWJ) this morning. The EWJ is trading lower by 0.22 cents to $9.81 a share. Short term traders can watch for intra-day support around the $9.59 level. Should that support level fail to hold intra-day the next important intra-day support area will be around $9.00.
Canon Inc. ADR (NYSE:CAJ), Honda Motor Company Ltd. (NYSE:HMC), and Sony Corp. (NYSE:SNE) are all Japanese American Depository Receipts that trading lower this morning. Should the news out of Japan suddenly become better regarding the troubled nuclear reactors these stocks are likely to catch a bid higher.